<TABLE> <S> <C>


<ARTICLE>                                            9
<LEGEND>
The schedule contains summary financial information extracted from Palmetto
Bancshares, Inc. and subsidiary Consolidated Income Statements and Consolidated
Balance Sheets and is qualified in its entirety by reference to such financial
statements.                            
</LEGEND>                                                
<MULTIPLIER>                                   1,000
       
<S>                             <C>
<PERIOD-TYPE>                                  3-MOS
<FISCAL-YEAR-END>                              DEC-31-1998
<PERIOD-START>                                 JAN-01-1998
<PERIOD-END>                                   MAR-31-1998
<CASH>                                         30,645    
<INT-BEARING-DEPOSITS>                              0    
<FED-FUNDS-SOLD>                                1,568    
<TRADING-ASSETS>                                    0    
<INVESTMENTS-HELD-FOR-SALE>                    20,921    
<INVESTMENTS-CARRYING>                         77,748    
<INVESTMENTS-MARKET>                           79,412    
<LOANS>                                       379,940    
<ALLOWANCE>                                    (5,289)   
<TOTAL-ASSETS>                                536,930    
<DEPOSITS>                                    467,812         
<SHORT-TERM>                                   28,427    
<LIABILITIES-OTHER>                             2,975    
<LONG-TERM>                                         0    
<PREFERRED-MANDATORY>                               0    
<PREFERRED>                                         0    
<COMMON>                                       15,499    
<OTHER-SE>                                     18,483    
<TOTAL-LIABILITIES-AND-EQUITY>                536,930    
<INTEREST-LOAN>                                 8,354    
<INTEREST-INVEST>                               1,415    
<INTEREST-OTHER>                                   90    
<INTEREST-TOTAL>                                9,859    
<INTEREST-DEPOSIT>                              3,773    
<INTEREST-EXPENSE>                              4,096    
<INTEREST-INCOME-NET>                           5,763    
<LOAN-LOSSES>                                     390    
<SECURITIES-GAINS>                                  0    
<EXPENSE-OTHER>                                 4,769    
<INCOME-PRETAX>                                 2,096    
<INCOME-PRE-EXTRAORDINARY>                      1,467    
<EXTRAORDINARY>                                     0    
<CHANGES>                                           0    
<NET-INCOME>                                    1,467    
<EPS-PRIMARY>                                    0.47    
<EPS-DILUTED>                                    0.47    
<YIELD-ACTUAL>                                   4.89    
<LOANS-NON>                                       870    
<LOANS-PAST>                                      136    
<LOANS-TROUBLED>                                    0    
<LOANS-PROBLEM>                                     0    
<ALLOWANCE-OPEN>                                5,152    
<CHARGE-OFFS>                                    (285)   
<RECOVERIES>                                       32    
<ALLOWANCE-CLOSE>                               5,289    
<ALLOWANCE-DOMESTIC>                                0    
<ALLOWANCE-FOREIGN>                                 0    
<ALLOWANCE-UNALLOCATED>                             0    
                                                        
                                              

</TABLE>